Streamline Health Solutions' (STRM) CEO Bob Watson on Q2 2014 Results - Earnings Call Transcript

Jul.27.14 | About: Streamline Health (STRM)

Streamline Health Solutions, Inc. (NASDAQ:STRM)

Q2 2014 Earnings Conference Call

July 24, 2014 17:00 ET

Executives

Randy Salisbury - Senior Vice President, Investor Relations

Bob Watson - President and Chief Executive Officer

Nick Meeks - Senior Vice President and Chief Financial Officer

Analysts

Dillon Hoover - Craig-Hallum

Frank Sparacino - First Analysis

Bruce Jackson - Lake Street Capital

Jack Wallace - Sidoti

James Terwilliger - Newport Coast Securities

Operator

Good day and welcome to the Streamline Health First Quarter Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Randy Salisbury.

Randy Salisbury - Senior Vice President, Investor Relations

Thank you for joining us to review the financial results of Streamline Health Solutions for the first quarter of fiscal year 2014, which ended April 30 of this year. As the conference call operator indicated, my name is Randy Salisbury. As Senior Vice President and Chief Marketing Officer here at Streamline Health, I manage all communications including Investor Relations.

Joining me on the call today are Bob Watson, our President and Chief Executive Officer and Nick Meeks, our Senior Vice President and Chief Financial Officer.

At the conclusion of today’s prepared remarks, we will open the call for a question-and-answer session. If anyone participating on today’s call does not have a full text copy of the release, you can retrieve it from the company’s website at streamlinehealth.net or at numerous financial websites.

Before we begin with prepared remarks, we submit for the record the following statement. Statements made by the management team of Streamline Health Solutions during the course of this conference call that are not historical facts are considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those reflected in the forward-looking statements included herein.

Please refer to the company’s press releases and filings made with the U.S. Securities and Exchange Commission, including our most recent Form 10-K reports for more information about these risks, uncertainties and assumptions and other factors. Participants on this call are cautioned not to place undue reliance on these forward-looking statements, that reflect management’s analysis only as of the day hereof. The company undertakes no obligation to publicly revise these forward-looking statements.

On this call, the company will discuss non-GAAP financial measures, such as adjusted EBITDA. Please refer to our website at streamlinehealth.net and our earnings release for reconciliation of such non-GAAP measures to the most comparable GAAP measures. Management uses certain non-GAAP measures to evaluate and monitor the ongoing financial performance of our operations. These non-GAAP measures do not include certain items of income and expense that affect operations and other companies may calculate these non-GAAP measures differently.

With that said, let me turn the call over to Bob Watson, President and Chief Executive Officer. Bob?

Bob Watson - President and Chief Executive Officer

Thank you, Randy and good afternoon to all of you participating on today’s call. As I stated last month on our Q4 2013 and fiscal year 2013 conference call, I apologize for the delay in reporting our first quarter results. The delay as I am sure you all know is directly related to delayed filings for the end of the prior fiscal year. That said we fully expect to be back on schedule and to present our Q2 earnings in a timely manner in September and for each quarter thereafter.

Before discussing the specifics of our first quarter performance, I want to revisit for one final time our year end audit challenge and then be done with that conversation. I want to be crystal clear about what we believe transpired this past spring. It was not an auditor problem. It was a Streamline Health problem. Let me explain. When this management team was first brought into Streamline Health in early 2011, our initial focus was threefold. First, to better understand our clients and value our company brought to them, so that we would be able to build a business that would allow us to sell additional solutions to these clients. Second, to rationalize the company’s spend metrics in order to generate positive cash flow. And third to build a long-term strategic plan against which we would execute. Those steps were accomplished in the first 18 months of our tenure here.

In late 2012, the decision was made to relocate corporate headquarters from Cincinnati to Atlanta, including the finance and administrative functions. It became clear during the second half of 2013 that many of the accounting processes and procedures we inherited were antiquated. Many of these processes had not been updated for nearly 15 years. These weaknesses were articulated in Item 9A internal controls over financial reporting in our most recent 10-K. During the same period, our shareholders approved the change in our auditors from a middle care firm to a Big Four firm.

The company’s rationale for recommending this change to our shareholders was that we knew that we would become a much larger and more complex company. And as much as we ourselves provide best of breed solutions, we wanted our key providers to be best of breed as well. We consider the results of the arduous audit process that incurred earlier this year and the recommended improvements we will make to be simply another step albeit a painful one in the continuing transformation of our company into a world-class healthcare information technology company that management foresees. That said, going forward we will not talk about the specifics of the audit anymore. We now have policies in place with our auditors to get back on track with regard publishing earnings on a timely schedule going forward.

Turning our attention now to the first quarter 2014, revenues were approximately $7 million, an increase of 7% over the same quarter last year. It is worth noting that recurring revenue grew materially and was up by 15% over the first quarter of last year. Revenue was negatively impacted by two factors. First, a decline in professional services revenue which was down more than $300,000 from the same quarter a year ago. Second, there was lower than originally anticipated revenue recognition from the Unibased acquisition which was completed at the beginning of the first quarter.

Revenue recognition was less than estimated due to a higher deferred revenue valuation allowance. These original estimates of the Unibased revenue contribution for the quarter did not assume a 50% haircut 0131 due to valuation allowance. This revenue drag will persist to the balance of the year as we work through the deferred revenue acquired from Unibased.

The softness in our professional services revenue is directly related to two items. Our emphasis on getting backlogged software as a service clients live during quarter and the continued softness in the professional services revenue segment due to client resource constrains. Although as I said in our call a few weeks ago, we do see some material improvement in resource allocation at our client sites. Further I should remind everyone that our professional service fees in a SaaS based sale are recognized over the life of the contract which on average is about four years in length rather than on an milestone or time and materials methodology as they are with perpetual license or term license sales.

As some of you know, we had a change in our sales leadership at the start of this fiscal year. And as often happens when you have the change in that role you experience some lag times or delays in closing deals. This was apparent in our bookings number of the quarter which was lower than normal. However, we believe that by filling the position from within, we will recapture sales momentum as the sales leader and his team close deals that were in our year end sales pipeline, while building that pipeline as well. While this quarter was challenging, we remain confident that our sales organization’s performance on a yearly basis will exceed the results from last year. That said, we also feel strongly that key metrics such as contract renewals are harbingers for the momentum we have at the company.

Specifically, in the first quarter we had $9 million in renewals. This is a firm and solid statement and conformation of our belief that our Looking Glass platform delivers significant and meaningful return on investments and clients continued to choose to work with us over other providers in this very competitive marketplace. I said before that we enjoy a world class client base, well known and highly regarded healthcare enterprises that can work with any healthcare information technology vendor they choose and they choose to work with us.

One of our sales theses is that we can leverage our client relationships in a given market to grow our client footprint. Our significant new client sale in this quarter came as a direct result of another client in the same city providing a referral to our team. This client win which we have not yet announced public but will shortly is a good example of our geographic penetration strategy. This model is fairly straight forward. We establish a foothold in our market and we leverage client references for introductions to other leading healthcare enterprises in the same market. For example when we started here at Streamline Health we had one client in Philadelphia, today we have four. We had six clients in the Greater New York City area and today we have 12. We have had similar results on the West Coast of Florida and in the State of Texas.

Further, our sales backlog was $62.9 million at the end of first quarter, up 19% over the first quarter of last year and up 11% from the end of fiscal 2013. I will now turn the call over to Nick Meeks, our CFO to review the specifics of our first quarter financial performance including commentary on the metric we introduced in our fourth quarter call, unimplemented quarterly committed recurring revenue. Nick?

Nick Meeks - Senior Vice President and Chief Financial Officer

Thank you, Bob. I would like to review some of the more significant aspects of the financial results for the first quarter ended April 30, 2014. As reported earlier today, revenues for the quarter increased approximately 7% over the prior comparable period to $7 million, of which approximately 89% were recurring comprised of software-as-a-service, maintenance and term licenses. As we reported during the previous call, unimplemented quarterly committed recurring revenue was $0.75 million at the end of the prior fiscal year.

Over the subsequent quarter, this metric was reduced to $650,000, the variance being comprised of approximately $150,000 of revenue now recognizable from implemented clients and approximately $50,000 of new client sales. We believe this metric unimplemented quarterly committed recurring revenue provides an added visibility into our overall performance as it represents revenue under contract that is not currently recognizable. From a future visibility perspective, we finished the quarter with approximately $62.9 million in revenue backlog, representing a 19% increase from the same period one year ago.

In our earnings release, we have included a table reconciling our net loss to the non-GAAP financial measure of adjusted EBITDA. We define adjusted EBITDA as net earnings or loss plus interest and tax expense, depreciation and amortization expenses of tangible and intangible assets, stock-based compensation expense and non-recurring expenses, such as severance costs. Given the relatively large amount of non-cash charges and certain non-recurring expenses, we feel that adjusted EBITDA is a more meaningful measure in understanding our underlying cash-based earnings.

Adjusted EBITDA for the second quarter was a negative $515,000. The primary variable was lower than anticipated revenue driven largely by professional services and the deferred revenue allowance for Unibased. We began the process of capturing cost synergies from the Unibased acquisition late in the first quarter and have advanced that effort through the balance of the second quarter. We believe the financial impact of these steps will be reflected in adjusted EBITDA numbers for the second half of this fiscal year.

Moving now to the balance sheet and our cash position, the ending cash balance for the quarter was $7 million. The largest use of cash in the quarter was the $6.5 million purchase of Unibased system architecture on the first business day of the fiscal year. In addition, the first quarter tends to result in our highest accounts receivable balance due largely to annual invoicing. The building accounts receivable balance was exacerbated through Q1 and into Q2 as the finance team focused the majority of its efforts on finalizing the annual audit. Having now completed both the annual audit and the first quarter 10-Q, we will increase our focus on receivables management moving forward.

That concludes my remarks. I will now turn the call back over to Bob.

Bob Watson - President and Chief Executive Officer

Thank you, Nick. We will continue to thoughtfully make investments in our future through both development and infrastructure. During Q4 of last year and into Q1 of this year, we invested heavily in our clinical analytics solution acquired from Montefiore Medical Center in the fall of 2013. As we stated last fall, we didn’t expect our first sale of this solution until Q3 of 2014. I am happy to report today that we recently received an order for a proof-of-concept license for this solution from a government owned healthcare system. We see great promise with this solution and will continue to update you on our progress as we build sales momentum.

Likewise, we will focus on the long-term strength, stability and visibility of our revenue stream by driving whatever possible, our sales contracts to the software-as-a-service model. As previously mentioned, this transition has a direct impact on our top line revenue, which impacts our adjusted EBITDA as well. This is an ongoing process as we focus on converting as much of our existing perpetual license-based sales pipeline as possible over to software-as-a-service based model. We continue to build this company for a long run via a plan of measured sustainable growth to become the world class healthcare information technology company. I know we can be. As always, I want to thank our entire team of associates for their hard work, dedication too, and support of management’s strategic plan. Finally, I firmly believe that our vision to deliver critically important solutions to our clients from our Looking Glass platform is timely and accurate.

I will now turn the call over to the operator for question-and-answer session. Operator?

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) And we will go first to the site of Matt Hewitt with Craig-Hallum. Your line is open. Please go ahead.

Dillon Hoover - Craig-Hallum

Good afternoon gentlemen, this is actually Dillon on for Matt. Hi guys, so I am going to start off with a couple of more macro oriented questions, first half last time we spoke about a month ago, you had noted that the healthcare IT spending kind of environment appetite for spending was improving, is that still the same, has it gotten any better, worse, kind of the same, status quo since then?

Bob Watson

I would call it status quo. I mean it’s only been a month. We do still see fairly robust activity inside the sales pipeline, which we think is a good indicator of that metric for us.

Dillon Hoover - Craig-Hallum

Okay. And then a question on a specific opportunity in general, we have been getting a lot of news headlines around the VA patient scheduling replacement, given your acquisition of Unibased kind of opportune, are you guys involved in that process, is there an RFP that’s been submitted or in the works can you comment on that?

Bob Watson

Yes. I can. There is forthcoming in RFP from the Veterans Administration is expected some time in the next 30 days to 60 days. We will participate in that process. As you know we have a live VA site using our scheduling asset today.

Dillon Hoover - Craig-Hallum

Okay. And would you care to quantify that opportunity or is it not at that stage yet?

Bob Watson

That’s rather not at this point. I mean its 171 hospitals or 150 or 171 hospitals something like that I mean it’s a very large opportunity, it’s very complex. It’s fraught with political nonsense that happens in DC and if you pick up the newspaper, read USA Today Online, or the Wall Street Journal virtually everyday there is some debate regarding the poor care our veterans have received in those hospitals. So, it’s a very clear-sized process.

Dillon Hoover - Craig-Hallum

Okay. And then kind of just drilling down on to streamline in particular, last call you disclosed that it was three go-lives in Q1 and two in Q2, do you guys had any more since that into Q2 or too early?

Bob Watson

We have had one more since a month ago.

Dillon Hoover - Craig-Hallum

One to two. Okay.

Bob Watson

And just to clarify Dillon, let me clarify something there. When these go-lives happen there is a lag of 30 days to 60 days before there is revenue recognition on our side, so just (indiscernible).

Dillon Hoover - Craig-Hallum

Okay. And then lastly for me, maintenance and support I know that’s kind of a lumpy business, pretty strong, actually strongest I have seen it over the past couple of years, was there any big one-time things in nature there or any orders got pulled through from Q2, or pushed out I guess from Q4?

Bob Watson

In the maintenance revenue one?

Dillon Hoover - Craig-Hallum

Yes.

Bob Watson

That’s – there is nothing unusual in that line, it reflects the addition of the UNO-based asset in the quarter and that’s the only thing that’s reflected in that number.

Dillon Hoover - Craig-Hallum

Okay. Thanks for the color.

Bob Watson

You’re welcome.

Operator

Thank you. And we will go next to the site of Frank Sparacino with First Analysis. Your line is open.

Frank Sparacino - First Analysis

Hi guys. Maybe first on the bookings, can you just talk about when you look at the SaaS line at the $1.2 million, what comprised that what products?

Bob Watson

It was analytics Frank.

Frank Sparacino - First Analysis

On the cash flow side of things given the start of the year, what would you anticipate for the full year in terms of cash flow from operations?

Nick Meeks

Frank, this is Nick. I would expect that it’s certainly positive and more positive than it was last year given the distraction with the audit. We had a rough start in managing our own revenue cycle that it will return to positive cash generation during the year and be more positive than it was last year.

Frank Sparacino - First Analysis

And then lastly, just on the acquisition front, any update on CentraMed?

Bob Watson

No change from when we spoke on the call a month or so go. The certain closing conditions have not been met. When and if those conditions are met, the transaction will close. If they are not met, we are obligated under security rules to release the press release noting that those closing conditions were not met.

Frank Sparacino - First Analysis

Okay, thanks. I will jump back in the queue.

Bob Watson

Yes. Thanks, Frank.

Operator

And we will go next to the side of Bruce Jackson with Lake Street Capital. Your line is open.

Bruce Jackson - Lake Street Capital

Hi. So, one follow-up question on CentraMed, do you think you can still close this quarter or would it be maybe move into the next quarter?

Bob Watson

Unlikely this quarter we are couple of weeks away from the end of the quarter – unlikely in this quarter.

Bruce Jackson - Lake Street Capital

Okay. And then with Unibased, you said that you had to take a little bit of a haircut, what was the actual revenue contribution of Unibased in fiscal Q1?

Bob Watson

Now, let me talk about the haircut for a minute, while Nick gets the actual contribution from Unibased. I mean, the impact of the 50% haircut on the deferred revenue was approximately reduction in revenue for the quarter of about $340,000 and that will from our original plans internally. So, it’s a fairly material cut.

Nick Meeks

$385,000 was their total contribution to revenue in the quarter.

Bruce Jackson - Lake Street Capital

Okay, great. And then one last question on the Collabra revenue, I think you were expecting it to be back end loaded for this year, is that still the case?

Bob Watson

We expected license revenue to be back end loaded this year, not specific. I don’t think we gave any guidance as to the specific solutions, but we do continue to see the license opportunities percolate to the sales pipeline and they will be given the fact that we are, where we are in the year back end loaded.

Bruce Jackson - Lake Street Capital

Okay, great. Thank you very much.

Bob Watson

Thanks, Bruce.

Operator

Thank you. And we will go next to the side of Jack Wallace with Sidoti. Your line is open.

Jack Wallace - Sidoti

Just thinking about the recent re-branding of the Looking Glass Platform, the full set of software as a whole, how much I guess early success have you had going ahead and up-selling existing customers with the full suite of product. And I guess one when would we see I guess down the road customers taking the full package?

Bob Watson

It’s actually a good question. So, let me walk through a couple of examples. So, over the last 3.5 years, we had some clients that have continued to make additional purchases of additional solutions as we brought them on. We have one client today that actually has pieces of all four of the key solution areas in their health system. Part of our plan has been in terms of rationalizing our acquisition strategy and our platform strategy has been our ability to cross-sell those solutions across the client base. And there has been a significant amount of that over the last couple of years. We are approaching a level of close to 20% of our clients today have solutions from more than one solution stack.

And so as we move through that sales process over the next couple of years, we expect to see more uplift inside a client base. I have said before that I continue to think that our sales organization ought to deliver something in the vicinity of 70% of net new sales should come from our current accounts as opposed to net new accounts. We performed at about 60%, 40% level last year, 50%, 50% the prior year. So, the metrics are starting to get aligned where I would like them to be. Now, the concept of someone actually buying the entire platform is an initial purchase. I mean, frankly that’s unlikely. Many of our net new clients are going to take up a relatively smaller chunk of our solution set on day 1, as they get to know us, but the same strategy then plays out once they are a current client, we work them into the sales process for the other solutions over time. And so that’s our model Jack. So, I don’t think there should be any expectation that there is a buyer that’s going to take 100% of the platform on an initial purchase, just statistically unlikely.

Jack Wallace - Sidoti

Thanks. That’s some good color, Bob. And then maybe you can give me a better idea for the expected success for converting the pipeline for the rest of the year, I mean, you mentioned it will be back end loaded. And I am just wondering what pieces of the solution circle if you will are expected to be converting?

Bob Watson

So, if we look at the sales pipeline conversion from opportunity to sale, over the course of the year, we were just talking to Jack, we were – or Bruce gives me, we were talking about the – excuse me got a little bit of a sinus infection. So, we are talking to Bruce we made a point that the solutions get moved through the pipeline in orderly fashion that we are back end loaded on some license sales that we forecast early in the year. On the prior call, we noted that somewhere 10% to 15% of our revenue this year would be licensed sales revenue. We expect that revenue to hit as we move through quarters three and four. As we look at the sales pipeline conversion numbers, it will move the mix of the business this year. The raw pipeline today stands at about 40% in the financial management sector, 25% in the HIM coding sector, 20% in scheduling and the balance in patient care. And as you know the patient care solution is primarily the solution we acquired from Montefiore last fall. When we made that acquisition in the call around that acquisition, we noted that we didn’t expect to have a sale until Q3 of this year. We just discussed today in the prepared remarks that we had a proof-of-concept purchase order on that solution in the second quarter. So, we think the progress is pretty good.

Jack Wallace - Sidoti

Okay, thanks. And then lastly, are there any changes to the guidance of call it $34 million, I think it was $37 million for the rest of the year or for the entire year?

Bob Watson

No change to the guidance.

Jack Wallace - Sidoti

Okay, thank you.

Bob Watson

You are welcome.

Operator

Thank you. And we will go next to the side of (James Terwilliger) with Newport Coast Securities. Your line is open.

James Terwilliger - Newport Coast Securities

Hi Bob. Can you hear me?

Bob Watson

I can James. How are you today?

James Terwilliger - Newport Coast Securities

I’m doing well. I hope you feel better with that sinus infection.

Bob Watson

Yes, it’s not a good time.

James Terwilliger - Newport Coast Securities

The weather is not helping you. Very quick one, I am new to the store, but I wondered Bob, this is probably old news for a lot of people on this call and I apologize, but I wonder if you could provide some color and visibility into some of the expense lines, the two expense lines I would like you to discuss at a high level would be the increase in the SG&A expenses and then also the increase in R&D. Are there any one-time items maybe from the audit that are in these expense lines and how should I trend those lines going forward as I start to do some modeling?

Nick Meeks

So, there are one-time items. This is Nick Meeks. There are some one-time items in the SG&A section. And the easiest way to see them is via the adjusted EBITDA reconciliation we will give you the breakdown. When you think about R&D, there are two big factors there. Since the comparable period of 2013, we made both the CLG acquisition and the Unibased acquisition with also limited cash – capitalized software to the legacy business, the legacy Streamline business. And as such, as our R&D department is spread over a much broader solution portfolio, we are capitalizing less. So, I am going to say in round numbers we capitalized $260,000 and less in this quarter than we did in the same quarter in 2013.

James Terwilliger - Newport Coast Securities

Okay, excellent. And just one more question real quick on the sales and marketing side, Bob, how is that trending? You have done some acquisitions. Have you been able to cross-train some of the acquired sales force with your different products? Are you looking to hire sales people? And I mean just at a high level of talking and a little bit about maybe the momentum of the sales and marketing departments with a number of addition – initiatives that you have going on within the company?

Bob Watson

Sure. So a couple of things as we noted again in the prepared remarks we had a change in leadership at the start of the year. We did promote from within which we into the sales leader role which we think is very important. We have added somewhat significantly to the sales team over the sort of five or six and seven months – six months of this fiscal year. All of our sales assets or cross trained and selling process we don’t necessarily have a specialists in anyone area. We think that model plays out well when you think about the fact that they have a significant number of current accounts as well as new business responsibilities, but a significant number of current accounts that they are responsible for cross selling. And as I noted in one of my earlier comments we have – about 20% of our client base has multiple solutions from us today. So there is still plenty of positive run way in front of us there for the sales organization. And again as I said earlier I believe that we need to get our cross-selling percentage of sales bookings into the 70% range this year.

James Terwilliger - Newport Coast Securities

Okay. I will jump back in queue. Thanks a lot guys for taking my questions. Thank you.

Bob Watson

Thanks James.

Operator

Thank you. (Operator Instructions) And we will take a follow-up question from Frank Sparacino with First Analysis.

Frank Sparacino - First Analysis

Hi, guys. Just I want to confirm in the earlier comments around bookings expectation for the year, I think you stated you believe we would see growth relative to last year?

Bob Watson

Correct.

Frank Sparacino - First Analysis

And on the front, Bob, can you just talk about on the HIM coding side of the business what the discussions have been like recently as it relates to CAC or CDI and just what’s going on around the marketplace?

Bob Watson

It’s interesting the delay notification and I think I have probably said this on the call a month or so ago but delay notification for vendors like ourselves is – has been a net positive. The – our pipeline continues to grow in total dollar value that number of opportunities that are related to either to some segment of HIM coding CDI portfolio are relatively significant. They intend to be – because of the nature there intend to be very large opportunities. So they move a little slower through the pipeline, but they are very, very meaningful when they are closed. So it’s the activity levels continue to be high, if you go back to Q4, in Q4 we had the first sale of Access Anywhere and Computer Assisted Coding and CDI in the same sale metrics. That model I think going forward for is sort of interesting to be able to leverage the value of the unstructured data that’s in that’s captured through the solution formerly known as Access Anywhere. It’s really important to many of the clients we are speaking to, sales prospects we are speaking to in the marketplace.

Operator

(Operator Instructions) And at this time, I am showing no further questions in the queue.

Randy Salisbury - Senior Vice President, Investor Relations

I will appeal give it back to me. I will conclude today’s call. Again, we thank you very much for your interest and support of Streamline Health. If you have any additional questions or need more information please feel free to contact me directly at randy.salisbury@streamlinehealth.net. And as Bob mentioned, so did Nick, we look forward to speaking with you again in early September when we will report our second quarter 2014 earnings. Good day.

Operator

And thank you for joining us today. Ladies and gentlemen, we certainly appreciate everyone’s participation today. Today’s program has concluded. You may disconnect at any time. Once again thank you for joining us.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!